Both parties are in fantasy land – but Sunak’s tax attack on Labour is rich given what his government has cost voters
Before we get on to any of the numbers – from Rishi Sunak’s claim about Labour raising taxes by £2,000 to the more outlandish numbers going around today – here’s the most important thing you have to know right now.
The parties fighting this election have yet to publish their manifestos. They might come as soon as next week, but until those documents, with their shopping lists of confirmed policies, actually land, we are in a kind of policy no man’s land where each side is guessing (and sometimes plain making up stuff) about what the other side actually wants to implement if they win the election.
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And since all parties like to talk a lot about exciting new things they’d spend money on and not half as much about the taxes they’d raise to pay for all that stuff, it doesn’t take a mathematical whizz to realise that if you take them all quite literally then you can impute some pretty big “black holes” in their plans.
Those “black holes” matter because both Labour and Conservatives have signed up to fiscal rules preventing them from splurging without limit. So if there is a hole, the assumption is it would have to be filled by raising taxes.
However, in the absence of either manifestos or detailed costing plans, the best we can do about all this for the time being is to speculate.
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Does Sunak’s claim about Labour taxes stand up?
That brings us back to the claim Rishi Sunak made in last night’s debate, that Labour will raise everyone’s taxes by £2,000. This is a direct consequence of this information vacuum.
It comes from a “dossier” published by the Tories last month, back before the election was called, which purported to calculate all Labour’s proposed tax and spending plans.
The headline finding from that paper was that over the course of the next four years Labour had roughly £59bn of spending plans (at least as far as the Tories claimed) but only £20bn of revenue raising plans. That leaves a £39bn hole. Divide that £39bn by the number of households in the country (18.4m) and you get a figure of just over £2,000. Voila: £2,000 of unaccounted tax rises or spending cuts which, said Rishi Sunak last night, would inevitably be filled with extra taxes.
Now, there are all sorts of objections to the way the Conservatives have carried out this exercise. For one thing, they deployed a weapon Labour don’t have: because they’re the party of government they were able to ask Treasury civil servants to cost some of the Labour policies (or rather, the policies they think Labour will implement – remember, those manifestos haven’t yet been published!).
Today there has been a backlash – including from the Treasury’s permanent secretary himself – about the way the Tories have portrayed these sums.
What the Tories have already cost households
The £2,000 figure isn’t really a Treasury calculation or for that matter an “independent” one, as Mr Sunak called it last night. It’s a Conservative figure – but it was put together in part with figures commissioned from civil servants.
There were other objections: Labour say many of the policies in that Tory dossier won’t cost half as much as the Conservatives claim.
But actually, surprising as it might sound, what’s most striking about this “bombshell” is how small it really is. Less of a bombshell; more of a hand grenade.
While £2,000 sounds like a big number, it’s actually a cumulative total from four years. A far more representative figure to take from the dossier is £500 – the annual figure.
And while that’s not to be sniffed at (if you believe it – which you probably shouldn’t) it’s far, far smaller than the tax rises we’ve all experienced under this Conservative government since 2019. They amount, all told, to an average of around £3,000 a year per household or, if we grit our teeth and tot it up as the Tories did in their dossier, over £13,000 over the course of the parliament. Which rather dwarfs that £2,000 figure.
Labour attack dossier is even more outlandish
So anyway, you’re probably hoping now we’ve explained the £2,000 from last night that we could leave things there. But sorry, no.
Because, this being the murky pre-manifesto period, Labour have gone one further and produced their own dossier, purporting to show Conservative fiscal plans for the coming years. But while the initial Tory document was somewhat conservative (with a small c) about its numbers, the Labour version is far more outlandish.
It assumes, for instance, that the Conservatives are planning to abolish National Insurance and inheritance tax overnight if they are elected. These are mammoth tax changes which the Conservatives have never committed to (they have made some vague noises about intending to abolish NICs but not in the next parliament).
Anyway, the Labour document takes these and other policies and works out that that would imply a black hole of roughly £70bn a year or a whopping £270bn when you tot up the first four years of the parliament (they actually provide five years of numbers but for the sake of comparability I’m looking solely at the first four years, as the Tories’ dossier did).
Divide that by the number of households (as the Tory document did) and you end up with a grand total over those four years not of £2,000 but of a staggering £14,000 per household.
Parties trading blows in the realms of fiscal fantasy
At this stage, now we’ve completely departed from realistic policy, you’re probably wondering when this silly saga will be over. Sadly the answer is: not yet.
Because having seen the Labour response, the Conservatives produced a second dossier, essentially saying: “Well, if you’re going to make all sorts of outlandish assumptions about the stuff we’ve vaguely talked about then can we have a go too?”
This final dossier includes all sorts of policies no one seriously expects Labour to implement this parliament: cutting corporation tax to 12.5%, scrapping business rates altogether, introducing French-style union laws. Add this all up and you end up with a grand total of £211bn a year or – if you multiply that by four years across a parliament, £844bn. So the best part of a trillion pounds.
We are of course in the realms of fiscal fantasy at this stage, but if you take that cumulative total and divide that by the number of households in the country you end up with an utterly ridiculous figure of £46,000.
Whether either party thinks these dossiers will change anyone’s mind in this election remains to be seen.
Right now they mostly look like an attempt to send economics correspondents completely crazy.
Keep up with all the latest news from the UK and around the world by following Sky News
Both major parties are committed to tax rises
But the overarching point is as follows: both the major parties are committed to tax rises in the coming years. We know as much because the official Office for Budget Responsibility plans will see the tax burden increase sizeably, in large part because the main tax-free allowances are being frozen, ensuring everyone ends up paying more tax, once you adjust for inflation and rising wages.
These tax rises – the long-term consequences of the pandemic and the energy price guarantee – are quite likely to dwarf any measures we hear about in the coming manifestos.
But until we get those manifestos, the rest is, yes, speculation.
Anthony Joshua missed out on the chance to become a three-time heavyweight world champion after he was stopped by British rival Daniel Dubois in the fifth round.
Dubois, 27, knocked down Joshua towards the end of the opening round with an overhand right to the 34-year-old’s chin.
The IBF heavyweight champion then dropped Joshua at the end of round three and twice in the fourth.
A right hook ended the fight with a knockout for Dubois’ first defence of the title.
The fighters went toe to toe at London’s Wembley Stadium in front of a record 96,000 fans.
The 34-year-old was knocked down four times in the opening four rounds, and knocked out in the fifth. Pic: Reuters
Daniel Dubois became IBF champion after Oleksandr Usyk vacated the title. Pic: Reuters
‘We came up short’
Minutes after retaining the IBF championship, Dubois shouted to the crowd “are you not entertained?” before saying: “I’m a gladiator, you know?
“I’m just a warrior to the bitter end. I’m just ready to go. I want to go to the top level of this game and reach my potential. God bless you all.”
Joshua said the loss would not stop him from rebuilding despite admitting “we came up short”.
“You know I’m ready to kick off in the ring, but I’m going to keep my cool, keep very professional, and give respect to my opponent,” he said.
“I’m always saying to myself I’m a fighter for life… We keep rolling the dice. I had a sharp opponent, a fast opponent and a lot of mistakes from my end, but that’s the game.”
Dubois’ victory has sent a message to the whole heavyweight division
Daniel Dubois will feel like he has fulfilled his destiny here at Wembley. His father has trained him to be a champion boxer since he was tiny.
He held the IBF belt, but he has gone in there tonight and defended it in spectacular fashion – he is now in every conversation going forward.
What now for AJ? Can he face rebuilding? And will he even want to?
The Wembley ring walk is notoriously long, and Dubois looked nervous – but so did Joshua, who has done this many times before in front of a full house.
Perhaps he was thinking of what was at stake – the chance to be a three-time heavyweight champion of the world.
But 27-year-old Dubois holds the belt and was keen to prove he was a worthy champion quickly.
Many wondered if Dubois would freeze on the biggest stage: Question asked and answered emphatically.
It was a crushing defeat for Joshua – most were not expecting such a one-sided victory.
Dubois will now most likely take on the winner of Fury v Usyk 2 for all the belts. But the manner of his victory has sent a message to the whole heavyweight division.
Pic: PA
Pic: PA
Hearn: AJ will want rematch
Promoter Eddie Hearn then said “it was the first round” where Joshua lost, “after that he was fighting on heart and desire”.
Hearn added: “When you are in there with a massive puncher this is what can happen. He never stopped trying to get up, even when he couldn’t get up.
“Daniel deserves credit, he’s a real world champion. Congratulations to him… I’m sure [Joshua will] exercise that rematch clause, it’s a given, it’s a dangerous fight because he’s growing in confidence all the time but he’ll believe he can beat him.”
Pic: Bradley Collyer/PA Wire
British champion Dubois, who before tonight had never fought at Wembley, was elevated to the IBF title holder after Oleksandr Usyk relinquished the belt.
Joshua outweighed Dubois by four pounds, despite a career-heaviest weight for his rival, ahead of the fight.
Among those watching was Tyson Fury, the former WBC heavyweight champion, who took a ringside seat.
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Liam plays Oasis hits
Fury is set to fight Usyk for the other three titles in a rematch on 21 December.
Ahead of the fight, Liam Gallagher played some of Oasis’ biggest hits to the sold-out crowd.
Pic: PA
Pic: Reuters
The 52-year-old frontman walked on to a massive cheer and said “yes Wembley vibes in the air,” before launching into Rock ‘N’ Roll Star, Supersonic and Cigarettes & Alcohol.
He and Noel Gallagher will play Wembley for their first of seven reunion shows at the stadium on 25 July – 307 days away.
Other famous faces ringside were Irish MMA fighter Conor McGregor, former boxer Ricky Hatton, Spice Girl Emma Bunton and Love Island presenter Maya Jama.
UK
Mohamed al Fayed: Former royal security head says he warned Royal Family before Diana went on holiday with businessman
The former head of royal protection says he warned the Royal Family about Mohamed al Fayed’s reputation before Princess Diana took her sons on holiday with him.
The former Harrods owner, who died last year at the age of 94, was described as a “monster” earlier this week by lawyers representing 37 alleged sexual abuse victims.
The women say he raped and sexually assaulted them while they worked at the luxury department store, prowling the shop floor and “cherry-picking” women to be brought to his executive suite.
Now, Mr Davies says people were aware of the Egyptian businessman’s reputation as far back as the 1990s, and that he raised concerns about him to the Royal Family.
Princess Diana on the quay of the residence of Mohamed al Fayed in Saint Tropez on 20 July 1997. File pic: AP
“This was a man who I would be concerned [about] if a relative of mine was going on holiday with him, let alone the future king and his brother and their mother, Princess Diana,” Dai Davies told Sky News.
Mohamed al Fayed during a match at Craven Cottage stadium in 2013: File pic: PA
In July 1997, a month before she died, Princess Diana went on holiday with Fayed and his wife to their residence in St Tropez.
She took the two young princes with her – a holiday Prince Harry described as “heaven” in his 2023 memoir Spare.
“I was horrified because I was aware of some of the allegations even then that were going around,” said Mr Davies.
“I was aware that he had tried very hard to ingratiate himself with the Royal Family and obviously knowing, as I did, the reputation he was alleged [to have] then, I was concerned, and I took the opportunity to inform the Royal Family.”
Princess Diana, Prince William (right) and Prince Harry (left) in Saint Tropez on 14 July 1997. File pic: AP
Mr Davies says he was told: “Her Majesty is aware.”
“The rest is history,” he said.
Buckingham Palace told Sky News it had no comment on the allegations.
Fulham ‘deeply disturbed’ by allegations
Fulham FC, a football club that was owned by Fayed between 1997 and 2013, has said it is “deeply troubled” by the dozens of “disturbing” sexual abuse allegations against the businessman.
The Premier League club also said it is “in the process of establishing whether anyone at the club is or has been affected” by this alleged behaviour.
Mohamed al Fayed waves a Fulham scarf in front of supporters in 2012. Pic: Reuters
However, Gaute Haugenes, who managed the club’s women’s team between 2001 and 2003, told the BBC extra precautions were taken to protect female players from Fayed.
“We were aware he liked young, blonde girls. So we just made sure that situations couldn’t occur. We protected the players.”
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‘The door was locked behind me’
A former Harrods employee told Sky News she was summoned to Fayed’s apartment when she began working for the department store at 19 years old.
She was told the meeting was a “job review” before “the door was locked behind me”.
“I saw his bedroom door partially open – there were sex toys on view,” she said.
“I felt petrified. I perched myself at the very end of the sofa and then… my boss, the person I worked for, pushed himself onto me.”
Read more: ‘One of the worst cases of corporate sexual exploitation’
Harrods said in a statement on Thursday it was “utterly appalled” by the allegations of abuse and apologised to Fayed’s alleged victims.
The department store has also set up a page on its website inviting former employees to come forward if they have allegations.
Keep up with all the latest news from the UK and around the world by following Sky News
The legal team involved in a civil claim against Harrods for allegedly failing to provide a safe system of work for its employees said they aimed to seek justice for the victims of a “vast web of abuse”.
Lily Allen says she had her children “for all the wrong reasons,” at a “high pressure” point in her career when she felt “overwhelmed”.
The singer and actress had her two daughters, Marnie, 12 and Ethel, 11, with her ex-husband Sam Cooper when she was in her mid-20s.
By the time she became a mum, she’d already had hit singles including Smile and The Fear, released two studio albums and received a Brit Award for best British female solo artist.
Speaking about motherhood on the BBC podcast Miss Me?, which Allen hosts with her long-time friend Miquita Oliver, she said: “I think I had children for all the wrong reasons, really.
“Because I was yearning for unconditional love, which I haven’t felt in my life since I was a child.”
The now 39-year-old star added: “And also, my career was at such high speed, high pressure, and I felt like very overwhelmed by what was happening. I just didn’t get much respite you know?
“And I felt like the only way to stop people hassling me was to say, ‘It’s not about me, actually this is about this other person that’s inside me’.
When asked by Oliver if it worked, Allen says: “Yeah, they did leave me alone. I don’t think I really understood what was happening, what I got myself into.”
The daughter of actor Keith Allen and film producer Alison Owen, she went on to discuss her own childhood.
“My mum, bless her, had children really early as well, and she really struggled. But she doesn’t really talk about the struggle. And so… She inadvertently gaslit me into thinking it was, you know, easy.
“You just sort of throw the kid over your shoulder and you get on with it.
“Her job was very static, and in one place and went to an office and mine wasn’t like that at all. It wasn’t easy. It just wasn’t easy.”
Allen is married to Stranger Things star David Harbour
The ‘nasty scars’ caused by absent parents
Allen previously told the Radio Times podcast that while she loves her children, having them “ruined her career”.
She said her decision to prioritise them over her pop career was a decision she made so as not to inflict the “nasty scars” of being an “absent” parent onto them.
She also said the myth of having it all “really annoyed” as it simply was not true.
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Allen, whose younger brother is Game Of Thrones actor Alfie Allen, married Stranger Things star David Harbour in 2020.
Away from her music career, Allen has branched out into acting over the last few years, starring in two plays in London’s West End, and winning a role in Sky drama Dreamland last year.
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